Traditionally looking at altcoin value is asking the value of x-number of Altcoins to your preferred currency. What if your preferred currency is Bitcoins?
First, looking at trade value for a currency, we rely on a few factors: weight of total in circulation, the number of transactions, cost of sell total, cost of buy total. When finding which currency has value over the other we divide the weight of the currency to number of transactions per each currency based on buy and sell prices of used currency. Because trade and market values need one currency to be used for the other we look at the currency being used to buy and for which is being bought as a group or set. In Example: Currency A/Currency B is a set. When USD is dived against BTC (USD/BTC) the value found is 0.00015. This number means $1 USD is equal to $0.00015 BTC. If we diveded like, BTC/USD then the value would be 6552.16. Meaning $1 BTC is equal to $6,552.16 USD. Now, if you look at BTC/AltCoin over a period of time (a spread) you'll notice a difference in value spreads than if you looked at USD/AltCoin.
Lately bitcoin value has skyrocketed then just recently many miners switched over to BCH for some extra profit causing BCH up and BTC down. I'm going to use this time frame for the example. From the time BTC hit a value of about $6500.00 USD (BTC/USD, 6500.00), altcoin values plummeted but the AltCoin/USD value has almost stabilised while AltCoin/BTC value just keeps dropping! Okay, let's take a second back because BTC/USD went from $6500.00 to $7200.00 and some before it dipped again.
When BTC value rises, all currencies in comparison to it will be a down slope, unless BTC is being dumped in larger quantities to a specific Altcoin (like we saw with Bitconnect most recently) or if an Altcoin has a different major backing source (like Monero). If BTC is your main currency then Altcoins and fiat would have been nothing to you but since the most recent dip, Altcoins will start to regain value slowly when compared against Bitcoin. What you should do is find the spread of AltCoin/BTC & AltCoin/USD (AltCoin/BTC||USD) or AltCoin/BTC, BTC/USD; compare answer1/answer2 (AltCoin/BTC>USD). The second is more tedious but yields better results in price prediction modeling.
I do appreciate you reading this so I wanted to add this piece of advice:
Again, thank you for reading,
--Douglas "3D"
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